>>Fly from San Francisco. It's the cube covering RSA conference, 2020 San Francisco brought to you by Silicon angle media. >>Hey, welcome back everyone. Cubes coverage here in San Francisco, the Moscone South. We're here at the RSA conference. I'm John, your host and the cube. You know, cybersecurity is now a global phenomenon, but cubbies have to move at the speed of business, which now is at the speed of the potential attacks. This is a new paradigm shift. New generation of problems that have to be solved and companies solving them. We have a hot startup here that's growing. Hazel cast, the CEO, Kelly Kelly Harrell is here. Cube alumni. Good to see you. Good to see you, John. Hey, so we know each other you've been on before. Um, you know, networking, you know, compute, you know the industry. You're now the CEO of Hazel cast. So first of all, what does Hazelcast do? And then we can get into some of the cool things. Hazel cast is an in memory compute platform. >>So we're a kind of a neutral platform. You write your applications to us. We sit in front of things like databases and stream, uh, streaming sources, uh, and we execute applications at microsecond speeds, which is really, really important as we move more and more towards digital and AI. Uh, so basically when, when time matters, when time is money people buy Hazelcast. So I've got to ask you your interest in better, you can do a lot of different things. You can run any companies you want. Why Hazelcast what attracted you to this company? What was unique about it that got your attention and what made you join the firm? Well, when I first started looking at it and realized that a hundred of the world's largest companies are their customers and this company really was kind of kind of a run silent run deep company. A lot of people didn't know about it. >>Um, I could not, I had this dissonance, like how can this possibly be the case? Well, it turns out, uh, if you go into the Java developer world, the name is like Kleenex. Everybody knows Hazelcast because of the open source adoption of it, which has gone viral a long, long time ago. So once I started realizing what they had and why people were buying it, and I looked at that, that problem statement and the problem statement is really increasing with digitalization. So the more things are speeding up, the more applications have to perform at really, really low latency. So there was this big big growth market opportunity and Hazel CAS clearly had the had the drop on the market. So I've got to ask you, so we're at RSA and I mentioned on my intro here the speed of business while he's been down the, it kind of cliche moving at the speed of business, but now business has to move as the speed of how to react to some of the large scale things, whether it's compute power, cloud computing, and obviously cyber is attacks and a response. >>How do you view that and how are you guys attacking that problem? Well, you know, it's funny. I think the first time I truly understood security was the day that I was shopping for a home safe. You know, because I realized that all of these safes, they all were competing on one of the common metric, which is the meantime to break in, right? Is that you had one job and all you can tell me is that it's going to happen eventually, you know? So the kind of the scales got peeled off my eyes and I realized that, that when it comes to security, the only common factor is elapsed time, you know, and uh, so the last time is what matters. And then the second thing is that time is relative. It's relative to the speed of the attack. You know, if I'm just trying to protect my goods in a safe, the last amount of time is how long it can take for the bad guy to break into the safe. >>But now we're working at digital speeds, you know, so, you know, you take a second break that down to a thousand, uh, that's uh, you know, milliseconds. It takes 300 milliseconds. The blink. Yeah. Now we're working at microsecond speeds. Uh, and we're finding that there are just a really rapidly growing number of transactions that have to perform at that scale and that, and that speed. Um, you know, it, it may have escaped people completely, but card processing, credit card, debit card processing, ever Dawn on you that that's an IOT application now. Yeah, because my phone is a terminal. Amazon's a giant terminal number of transactions go up. They have three milliseconds to decide whether or not they're going to approve that. And uh, now with using Hazel Cassady not just handle it within that three milliseconds, but they also are running multiple fraud detection algorithms in that same window. >>Okay. So I get it now. That's why the in-memory becomes critical. You can't gotta be in memory. Okay, so I got to ask the next logical question, which is okay, I get that it makes less sense and I want to dig into that in a second. But let's go to the application developer. Okay, I'm doing dev ops, I'm doing cloud. I'm cool. Right? So now you just wake me up and say, wait a minute, I'm not dealing with nanosecond latency. What do I do? Like what's I mean, who's, how to applications respond to that kind of attack velocity? Well, it's not a not a a an evolution. So the application is written to Hazel cast is very, very simple to do. Um, there are, uh, like 60 million Hazel cast cluster starts every month. So people out in the wild are doing this all day long and we're really big in the Java developer community, but not only Java. >>Um, and so it's very, very straightforward with how to write your application and pointed at Hazelcast instead of pointing at the database behind us. Uh, so that part is actually very, very simple. All right, so take me through, I get the market space you're going after. It makes total sense. You run the, I think the right wave in my opinion. Business model product, how you guys organize, how do people sign up for our development and the development side? Who's your buyer? What's the business look like? Share a Hazel. Cast a one-on-one. Yeah. So we're an open core model, meaning the core engine is open source and fully downloadable and you know, free to use, uh, the additional functionality is the commercial aspect of it, which are tend to be features that are used when you're really going into, into sensitive and large scale deployments. Um, so the developers have access to a, they just come to hazelcast.org and uh, and join the community that way. >>Um, the people that we engage with are everyone from the developer all the way up through the architect and then the a C level member who's charged with standing up whatever this new capability is. So we talk up and down that chain, um, where you're a very, very technical company. Uh, but we've got a very, very powerful RLM. What's the developer makeup look like? Is it a software developer? Is it an engineer? So what's the makeup of the, of the developer? They're core application developers. Um, a lot in Java, increasingly in.net, uh, as a MLM AR coming on, we're getting a lot of Python. Uh, so it's, it's developers with that skillset and they're basically, uh, writing an application that they're, um, uh, basically their division is specified. So we need this new application. It could be a new application for a customer engagement and application for fraud detection and an application for stock trading. >>Anything that's super, super time sensitive and, uh, they, they select us and they build on us. So you get the in-memory solution for developers. Take me through the monetization on the open core. Is it services? Is it, uh, it's a subscription. It's a subscription model. So, okay. Uh, w we are paid on a, on a annual basis, uh, for, for use of the software. And um, you know, however large the installation gets is a function that basically determines, uh, you know, what the price is and then it's just renewed annually. Awesome. We'll do good subscriptions. Good economics. It is. What about the secret sauce? What sun in the cut was on the covers? Can you share what the magic is or is it proprietary? Is that now what's, uh, it's, it's hardcore computer science. It really is what it is. And that is actually what is in the core engine. >>Um, but I mean, we've got PhDs on staff. We're tackling some really, really hard problems. You know, I can, I can build anything in memory. I can make a spreadsheet in memory, I can make a word processor and memory. But you know, the question is how good is it? How fast is it, how scalable, how resilient. So, um, you know, those, you're saying speed, resilience and scale are the foundation and it took the company years and years to be able to master this. That's an asymptotic attempt and you're never at the end of that. But we've got, you know, the most resilience, so something, it doesn't go down. It can't go down because our customers lose millions for every second that it's down. So it can't go down. It's got to scale. And it's gotta be low latency number of customers you guys have right now. Can you tell us about the public references and why they using Hazelcast and what did they say about it? >>Yeah, I mean we've got a hundred of the largest, uh, financial services, about 60% of our revenue. E-commerce is a, another 20% large telcos. Another job. There are a lot of IOPS type companies, right? Yeah. Basically it's, um, so you know, in the financial services, uh, it's all the names that you would know, uh, every logo in your wallet. It's probably one of our customers as an example. Um, massive banks, uh, card processors, uh, we don't get to talk about very many of them, but you know, something like national bank of Australia, uh, capital one, um, you know, you can, you can let your, your mind run there. Um, our largest customer has over a trillion dollar market cap. There's only a few that meet that criteria. So I'll let you on that one. One of the three. Um, all right, so what's next for you guys? >>Give the quick plug in. The company would appreciate the insights. I think he'd memory's hot. What do you guys are going to do? What's your growth strategy? Uh, what's, what do you, what's your priorities? The CEO? Yeah. Well, we just raised a $50 million round, which is a very, very significant round. Um, and we're putting that to work aggressively. We just came off the biggest quarter in the company's history. So we're really on fire right now. Uh, we've established a very strong technology partnership with Intel, uh, including specialty because of their AI initiatives. Because we power a lot of AI, uh, uh, applications. IBM has become a strategic partner. They're now reselling Hazelcast. Uh, so we've got a bunch of, uh, a bunch of wind in our sails right now coming into this year, what we're going to be doing is, uh, really delivering a full blown, uh, in memory compute platform that delivers, that can process stored and streaming data simultaneously. >>Nothing else on the planet can do that. We're finding some really innovative applications and, um, you know, we're just really, really working on market penetration right now. You know, when you see all these supply chain hacks out there, you're going to look at more in memory detection, prevention, counter strike, you know, all this provision things you got to take care of. Mean applications have to now respond. It's almost like a whole new SLA for application requirement. Yeah, it is. I mean, the bad guys are moving to digital speed, you know, if you have important apps that, uh, that are affected by that. Right. You know, you'd better get ahead of that. Well, actually you could be doing that, by the way. You can be doing that on your, on premise or you could be doing in the cloud with the managed service that we've also stood up while still we get the Cuban in, in memory Africa and when we were there, I will be happy. Kelly, congratulations on the funding. Looking forward to tracking you. We'll follow up and check in with you guys. All right. Congratulations. Awesome. Thanks John. I appreciate it. Okay. It's keep coverage here in San Francisco, the Moscone. I'm John furrier. Thanks for watching.